John Hancock: Weekly Market Recap Weed Ended July 27th
Economy surges
The U.S. economy grew by 4.1% in the second quarter, besting its revised projection of 2.2% from the first quarter. Trade played a significant role in the increase, the largest growth spurt since the 4.9% result seen in the third quarter of 2014.
Indexes mixed
The Dow closed the week with a modest advance, while the S&P 500 rebounded from a fall earlier in the week, due largely to the record drop posted by a social media giant after weaker-than-expected earnings growth. The NASDAQ couldn’t top last week’s record close.
Yields rising
The yield on the 10-year U.S. Treasury bond finished the week up, at 2.96%, after good news on economic growth and the Fed’s likely next interest rate raise in September. Stronger growth might have pushed the yields over 3% for the first time since May.
Savings rate climbs
The latest savings rate figures from the Bureau of Economic Analysis show that Americans socked away 6.7% in 2017, up from the 3.4% it had originally reported. The reason? Bigger paychecks, which have risen by 3.5% annually over the last five years.
Source: https://wmr.jhinvestments.com